Author: Joanie Mann

As the CTO for Mendelson Consulting and Director of Cloud Services for Noobeh, Joanie Mann provides support and guidance for businesses seeking to implement cloud solutions and services in their IT environments.
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Getting Results: Social Media for customer service is a sword that cuts both ways

In a recent article on Forbes.com, authors Mark Fidelman and Becky Carroll discuss the high cost paid by Southwest Airlines – cost in terms of customer perception as well as obvious costs in dollars – due to a website snafu resulting in lots of customer overcharges – and the part social media played in the entire affair.  There are a number of lessons to be learned from the article How One Defective Social Media Campaign Spawned Millions in Overcharges, but one big message is about the positive impacts of effective and relevant (and timely) customer communications.  Social media is a sword that cuts both ways, offering a platform for both positive, and not so positive, discussions and conversations.

Using social media for customer service has become just as, if not more beneficial than, having an army of agents in the contact center. This is especially true when a crisis hits a company. Gone are the days when a customer service issue was aired solely between a consumer and the company’s contact center (and maybe a few friends within earshot). When things go wrong, consumers take to a brand’s social media channels for several reasons. Forbes.com

Particularly when you factor in the viral nature of social media interactions, and the amazing speed with which ANY message can gain broad visibility, businesses should understand that all those “friends” can turn into an ugly mob pretty quickly if an effective communications strategy isn’t in place.

Whether or not an organization uses social media as one of their official customer service channels, customers will seek out all ways of communicating when they have an issue. How companies choose to respond on social media has a large impact on how quickly a crisis settles down.

But communication isn’t all that is required.  Providing information on a solid course of action, and how revealed problems are being addressed to satisfy customer demand RIGHT NOW is the critical element.  Communications and promises are nothing if they’re not backed up with action in real time.  Actually, the best solution is to not have the problem in the first place, but sometimes you just don’t see it coming (see “unintended consequences“).

Make sense?

J

Is great customer service the entire customer experience?

You know those car commercials on TV, where the sales person is telling the customer about how great the warranty on the vehicle is?  Yeah – the one where the customer wants to know if they should buy a good car, or buy a car with a good warranty.  Makes you think, doesn’t it?

Read more about using the cloud to extend your access and collaboration beyond traditional boundaries.

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Is your purchasing and expense approvals process holding up your business?

Is your purchasing and expense approvals process holding up your business?

When a small business owner hears about purchase and expense tracking, they immediately think of traveling sales people needing reimbursement for plane tickets, hotel rooms, and meals.  For others, it is a process geared towards control, making sure monies aren’t being spent where they are not approved.  Either way, purchasing and expense approval processes are generally viewed as “necessary evils” of doing business, and as such are often facilitated with spreadsheets to which receipts, invoices, quotes, or other documentation is attached.  Reviewing and approving this information is generally a manual process which takes time and attention from other activities.

When times are good, when credit easy to come by and everyone is fat, no one sweats the small stuff. But times haven’t been good for a while and today the small stuff looms large, especially in small businesses trying to grow at a time when investors and customers are wary.
CFO.com (http://s.tt/1kq4O)

Yet, as with so many things in business and in life… it’s not a problem until it becomes an obvious problem.  Most businesses don’t really recognize the amount of time they invest in these types of reporting activities, much less realizing that there are bigger business benefits to be achieved if only they would leverage technology to intelligently address the process.  Redundant information entry and exchange is reduced, accuracy of expense reporting is improved, and data collection and integration eliminates the impact of re-entering  information, or time delays in manual paper-based processes.

The growing problem at Blade, Verbeck says, was not so much that money was being misspent as that the work was burning up his and the finance department’s time. Requests and invoices piled up on his desk, distracting him from more valuable tasks, while employees were either waiting to purchase the stuff they needed to do their jobs or buying and expensing it.
CFO.com (http://s.tt/1kq4O)

In a recent article on CFO.com, David Rosenbaum describes several business experiences in addressing the payables approval process, and the benefits achieved through solving what was once not recognized as a problem.  From simply reducing the amount of money spent on nonessential items, to finding cancelled contracts still being paid, a structured and intelligent approvals process can make big differences in a variety of areas.  The essential element is a structured and intelligent process and not one designed simply to factor the spend into the cash flow.

The savings that can be retrieved by automating and rationalizing approval and purchasing processes are palpable (a 2009 Aberdeen Group study estimated that “improving the percentage of all non-payroll, tax, tariff, and fee-related spend” — that is, indirect, nonstrategic expenses — brought under the management of a dedicated group can help enterprises “achieve a 5% to 20% cost savings for each dollar brought under spend management”). But the real value, says Kristen Lampert, corporate-services manager at specialty-investment bank Ziegler, is de-risking organizational spending by making sure the approval chain has the right people weighing in on the right things.

There’s an old saying that “if all you have is a hammer, then every problem looks like a nail”, and Microsoft Excel has been the hammer of choice for many businesses over the years.  However, there are some things that can (and perhaps should) be done better and more efficiently with a solution designed specifically for that purpose.  Not everything is better in a spreadsheet.

Make Sense?

J

Read the entire article on CFO.com

  • Read more about using the cloud to extend “connectedness” beyond traditional boundaries 
  • Read more about how there’s no fear and loathing in accounting
  • Read more about the pressure on accountants to deliver more value and intelligence to their clients
  • Read more about Data Warriors: accounting in the cloud
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Success in the Finance Department: Better Data and Analysis

Success in the Finance Department: Better Data and Analysis

CFOs and corporate controllers are beginning to recognize the increased value they can deliver to the organization when they take a more holistic and comprehensive approach to data reporting and analysis.  The key is in delegation of duties, and establishing the controls and connections which ensure proper (and complete) flow of information throughout the enterprise.  The finance department can easily become overburdened if not structured properly, but can be as easily undervalued if the sole focus is getting the numbers right.

An article on CFO.com discusses some of the elements of structuring the finance department for greater success, and identifies the value of taking a proactive, consultative and analytical approach to business finance.

“For a CFO, “success is not just about getting the numbers right, but also uncovering the story behind the numbers: taking raw accounting information and creating cogent and compelling management discussion and analysis,” says Eileen Kamerick, managing director and CFO at investment bank Houlihan Lokey.

Those who take the big picture into account are more likely to develop an organizational structure that isn’t merely reactive. That will allow staff to come up with more ideas and, ultimately, help drive revenue and run the business. “You have to create an organization so you aren’t in the engine all the time,” Kamerick notes.”


This is a great article… read the entire post on CFO.com here

You’ll find that it makes sense.

J

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The Cloud Makes Time Travel Possible: Hosted applications can deliver immediate business benefits

The Cloud Makes Time Travel Possible: Hosted applications can deliver immediate business benefits

In an article published on CIO.com, author Kevin Fogarty describes how moving to a cloud IT approach proved to be a highly beneficial and strategic decision for an on-site diesel fuel distributor.  The focus of the article was on how existing software and processes were enabled by centralizing them in a cloud hosting environment, and not by replacing them with new subscription-based applications.

For many businesses, this is the secret that nobody’s talking about: you can have the benefits of “the cloud” without having to radically change everything you have and everything you do.  Retention of knowledge assets is critical to business continuity, and moving existing systems and process to platforms where they can be leveraged to greater business advantage is a way to do that.  With centralization of systems and services, information can be processed far more efficiently than before, eliminating delays and improving cash flows dramatically.  Time is money, and the cloud helps businesses spend less of both.

“A lot of the invoices have to go out every day by certain times, so third-party accounting companies can do their thing for the fleet owners.” The setup sounds like a classic for any overhyped business-process-automation system, but Daniel Abrams and other Diesel Direct managers weren’t interested in managing their business using sophisticated business systems that require more motivation, money and technical staff than Abrams was willing to use or pay for.”

The initial benefit is being able to use the products already in place, just from a more secure and redundant location, but when you begin to consider the positive ramifications of reducing the time between delivery and invoicing, billing and payment receipt, or customer demand and product supply, you rapidly realize that the cloud means much more to the business than just another way to run software.

“Those changes save Diesel Direct both money and time. Rather than running reports and invoices all night Tuesdays, for example, the additional capacity lets the company run those resource-intensive processes during the day rather than overnight. That gets critical work done faster and more accurately than a process left to complete itself unattended.”

In short, the cloud makes time travel possible, because the result is available almost immediately upon completion of the task.  It’s kind of like getting your expense check as you walk off the plane in your home town, because you reported all your expenses in real time as they were incurred (snap a picture of the receipt at the bar, and like that).

Yet most business owners and IT managers for small and mid-sized businesses are being told that the cloud is best applied when innovation is required, and should be reserved for NEW things, and not thought of as a way to improve the status quo with existing or legacy architecture.

“It’s not unusual for mid-sized companies to come to depend on cloud services, according to James Staten, vice president and principal analyst for Forrester’s Infrastructure and Operations practice.

It is unusual for them to be more concerned with infrastructure than with applications, he says.”

With affordable and secure application hosting services being widely available for small and medium businesses, owners and managers no longer have to look to new solutions just to enable mobility, remote access, and a fundamentally stronger and better-managed system.  Legacy applications can be hosted and delivered, extending their useful life as well as the value of the development and intellectual property, and giving customers capabilities not readily available with local implementations.

“Diesel Direct can’t accomplish anything if its minimal IT infrastructure is offline for any length of time.

Abrams, worried about storms taking out his business as well as the power, didn’t know what technical solution he wanted until Callow “described for him what an enterprise infrastructure looked like,” Callow says.

“They didn’t need one, didn’t want one, but they did want the security, the reliability of a redundant IT infrastructure,” he says. “The most effective way to get that at the lowest possible cost is the cloud.”

Among the greatest benefits of outsourcing application delivery to a cloud hosting provider are the increased monitoring and security, application of best practices, and high levels of system fault tolerance and recovery capabilities offered.  While business subscribers focus on features and functionality of the application, the real focus for hosting providers is the platform – and the management and security of it.  This behind the scenes work offers tremendous business benefit to subscribing customers, but is often not the focus when discussing overall benefits of a cloud computing approach in the context of Software-as-a-Service, which is where many smbs focus their investigations.  As an alternative, businesses who may seek to adopt hosted solutions for their existing applications and software frequently do so for reasons of security and redundancy, not recognizing that their business processes may likely experience significant improvement, as well.

“Enterprises might have the luxury of making strategic decisions about cloud or other technology,” Golden says. “In mid-sized companies things are very tactical. No cloud evangelist is going around the refueling industry saying ‘there are ways to solve this problem.’ “Companies make tactical decisions to solve their own problems and, five or 10 years later, we’ll all wake up and realize we’ve changed the way we do everything,” Golden says.”

Make Sense?

J

The company in the article could be just like yours.  You don’t have to adopt new software and systems to benefit from the cloud.  How could your business change, if you could remove the problems of time and distance?

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Lessons Learned (or Not): Development and the Cloud

Lessons Learned (or Not): Development and the Cloud

Talk about agile technology and how great things are because we can experience rapid software solution development and deployment via the cloud is shining a brighter light on certain IT management issues which have existed for quite some time, but perhaps went largely unrecognized.  One of these issues is product development direction and influence, and where it really comes from.  If you think most IT companies determine their product lines and offerings from the top down, with detailed specifications supported by a strong business case, you may want to think again.  Based on my experience and that of a lot of other folks, there are many companies out there offering products and services  that were crafted in more of an ad hoc manner than through a focused “product development” effort with long term sustainability in mind.  In some cases, this demonstrates ingenuity and a desire to look at things in new ways.  Sometimes it’s just uncontrolled and unstructured chaos with dollar signs attached.

“there’s a school of thought, put forward by the small but influential analyst firm RedMonk, that developers now occupy the role of IT kingmakers. This theory holds that the traditional model of IT adoption, which assumes that major decisions emanate from the top, is wrong. Instead, the decisions that appear to come from a CIO are, in fact, dictated by the choices made by people way down in the IT organization-the traditionally denigrated developers. CIOs merely ratify the decisions made by “lowly” developers.”

It goes like this:  a high level concept comes from upper management… some “great idea”.  This high level idea is communicated (at a high level) to the production teams who will make it real.  The production teams decide what it really is, how it will really work, what it will look like, and how it will be offered – and all of this generally based on the preferences, skill sets, moral guidelines, belief systems, and work ethic of those involved in the development process.  The product details are run back up the food chain, where they then become the defining elements of the new solution.  In many cases, refinements and changes are argued against by the developers, citing various reasons or roadblocks to making changes to their prized construction.  But hey – they got it ready to go out the door, didn’t they?  So what if it’s not quite what you envisioned, and doesn’t necessarily represent a sustainable strategy?

Experience in business does count, particularly if you learn from it.  There is a saying I heard once, and I’m still not sure how I feel about it other than it proves to be so very true each and every day.  The saying is that “there is no morality without context”.  In business, context is often experience, understanding the cause and effect of an action or activity.  Without this learning, without the experience earned within the organization or by others, there is no context guiding the development.

“It’s irresistible to poke fun at some of the most egregious aspects of today’s IT practices-change control committees that only meet once every two weeks;ITIL implementations that place more emphasis on paper trails than actually, you know, getting things done; operations groups that resist application updates in the name of stability, and so on and so forth.

However, the fact is that these functions, if not their manifestation, exist for important reasons. Overlooking them-or outright ignoring them-is not the right solution. Ensuring that updates to production systems are made, and being able to track who makes changes to infrastructure, are enterprise functions are that won’t go away just because cloud computing is in the picture.”

Lessons previously learned will need to be learned again, and addressing problems after-the-fact is generally far more costly than being proactive and trying to avoid them in the first place.  It can be a very painful process, watching the company go through puberty all over again (particularly if it had once reached some level of maturity), yet this is what can occur when the bright and shiny new idea causes management to forget fundamental lessons previously learned.

In a recent article on Computerworld.com, author Bernard Golden makes a number of really good and interesting points about the opposing viewpoints of this “agile” development enabled by the cloud (the article focuses on AWS – Amazon Web Services, but it is completely relevant in the broader context).  Link here to access the entire post, it’s worth the read.

http://www.computerworld.com/s/article/9230040/How_the_Cloud_Brings_Developers_into_Business_Process

Make Sense?

J

Read more about legacy application modernization, and why IT and back-office outsourcing makes sense for a lot of reasons 

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Accountants and their Clients Online: Who Owns the Data?

Accountants and Clients Working Online: who owns the data?

Mobile device support and remote access to applications and data is becoming a standard requirement for most businesses today.  The “online” working model goes a long way towards addressing problems face when they need to get team members together no matter where they are.  When the information is stored and managed centrally, it is easier to provide access to outside accountants or other professionals.  Yet, while this collaborative working model solves numerous problems, it also introduces a number of issues that neither the business owner nor their outsourced professionals may have thought about.  One of these issues is the challenge represented with dissolution of the engagement, and subsequent division of information assets related to it.  This separation can become unfriendly and problematic if the parties do not have an agreed-to plan.  Quite frequently, disagreements result from the use of subscription-based online services which are not clearly delineated as customer-controlled versus provider-controlled.  In these cases, clients may benefit from the use of a service through their provider, not understanding that the provider ultimately owns or controls access to the solution and maybe even the data associated with the account.

In general, it is safe to take the approach that whoever pays the bill for the service is the owner of the data associated with it.  This “he who pays the bill owns the data” approach is simple and it makes the most sense.  Consider that the individual paying the bill for the services is the individual who is financially obligated for what occurs with the service, so it makes sense that they would have authority over service access and usage.

It is quite common in outsourced and online accounting models for a professional firm to subscribe to services or solutions which help them support various processing needs for their clients.  Solutions such as Bill.com or Paychex provide tools to assist professionals in efficient delivery of various process-support services, such as bill payments and approvals, or payroll processing and reporting.  These tools are utilized as part of the professional service offering, and are generally not directly exposed to the client users (other than in specific contexts, perhaps).  Separating the client from these systems is usually not difficult; the professional simply stops using the solution for that ex-client.   Since the transaction information from the solution ultimately integrates into the accounting data file, the accounting firm can simply return the accounting data file to the client without losing their process support data in the online service.  On the other hand, if the client was the subscriber to the solution and the accounting professional was “invited” to participate with them, the separation would mean that the accountant no longer had access to the online data, and the client would retain use of the solution.

In contrast to a process-supporting solution, separations become far more complicated when the online solution includes fundamental tools for the client like general business application access and data storage.  Consider that a business decides to use SmartVault for its document management needs, and also wants to connect documents and files directly to transactions in their QuickBooks accounting system.  In this situation, the accounting data and the document vault are closely connected, and contain a wide variety of valuable business documents and files.  When the solutions are both run as online services, where the QuickBooks applications are hosted along with the integration for SmartVault, both the accounting professional and their business client can work more closely and in real time, creating much more value in the relationship.  If the relationship does not work out, however, separating applications and data can be a frustrating process for both parties if there isn’t a clear understanding of who gets what.  It would be easier perhaps if the question centered on an accounting data file, but in these situations the problem extends to questions of ownership of source documents, working papers, and even application software licenses.

Accounting professionals need to protect the value of the work they perform on behalf of the client, and the business owner needs to have their business information and applications.  Clearly understanding how to orient subscription based services to protect the interests of both parties is an important element in providing the highest level of professional service to clients.  In some cases it makes sense for the professional to own and control the subscription, particularly if the service is an element which supports professional services delivery.  These tools help you provide services to your clients, and the client benefits from the result of use of the solution.  If the client leaves you, then it is up to them to “tool up” their own operations to handle those processes.

In other cases, it makes far more sense for the client business to own and control their online services, and invite their outside professionals to participate. The benefits of working together are still present, and the remote access and mobility aspects benefit the business owners and team members as much as their remote professionals.  The accounting professionals can preserve their working papers and other work product on their own systems, drawing a clear line between their retained data versus that of the client and making a potential future separation much easier to facilitate.

jmbunnyfeet

Make sense?

J